Diving into a discussion about the U.S.-China trade war is a tough business, so allow me this caveat: anything can happen, especially with our current administration. Nevertheless, those who are seeking to capitalize on the best stocks to invest in may be onto something.
First, the obvious statement: neither side wants to budge an inch. On the one hand, decades of superior economic growth emboldened Chinese pride and nationalism. Naturally, this sentiment has translated into a significant military buildup. Backing down means losing credibility, something the Chinese leadership cannot afford.
On the other hand, the U.S. must protect its intellectual property and its national-security interests. According to author and noted China critic Gordan Chang, controversial tech company Huawei stole technology from Cisco Systems (NASDAQ:CSCO) and T-Mobile (NASDAQ:TMUS). Furthermore, Chang claims that the Chinese government and military supported Huawei's thievery.
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Under normal circumstances, we should not expect an imminent resolution, confusing matters about what to invest in now. However, we don't live under any sense of normalcy. Plus, headwinds on both sides suggest the best course of action is a workable truce.
Despite their recent fiery rhetoric, the Chinese government harbors serious fears. The latest economic data indicates declining growth, job losses in U.S.-tariff targeted industries and deteriorating consumer sentiment. Moreover, the ultra-rich are getting increasingly tense about future economic prospects.
For Americans, we're on the verge of unprecedented instability unless the government shutdown ceases. Additionally, President Trump and the Republicans have a political incentive to negotiate a truce with China. Scoring a victory here means assuaging the electorate, many of whom have turned their backs.
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Therefore, the pieces for a negotiation to occur is present. If so, here are the best stocks to invest in:
### Alibaba (BABA)
Among Chinese stocks, none get more attention than dominant tech giant Alibaba (NYSE:BABA). After a series of bumpy trading following its initial public offering, BABA stock skyrocketed in 2017. Around the middle of last year, Alibaba appeared on track to make a repeat performance.
Unfortunately, the escalating U.S.-China trade war derailed the company, knocking it off its perch as one of the best stocks to invest in. That said, BABA is enjoying a strong start to the new year, gaining over 16%. Of course, Alibaba also posted strong numbers in January 2018.
But for those seeking what to invest in now, the tech giant's troubles offer an enticing entry point. As our own Dana Blankenhorn argued, Alibaba offers underappreciated cloud solutions. Combined with U.S.-China optimism, BABA could surprise in 2019.
### Baidu (BIDU)
Another one of China's best stocks to invest in, internet stalwart Baidu (NASDAQ:BIDU) has grown exponentially since its 2005 IPO. It, too, suffered a few years of choppy trading until it regained decisively bullish momentum in 2017.
While it got off to a turbulent start last year, optimists hoped for a repeat performance. Unfortunately, the U.S.-China trade war had other ideas. Moreover, BIDU stock was particularly affected by the ensuing volatility. In the second half of 2018, shares dropped a staggering 33%.
For speculators eyeballing what to invest in now, BIDU stock has substantial upside potential. Unlike other Chinese companies, Baidu has yet to enjoy a noteworthy dead-cat bounce. Therefore, you're getting the internet firm close to the bottom.
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Of course, the caveat is that we're assuming no other economic or geopolitical event suddenly dampens enthusiasm. That's a big risk, but the rewards may justify it for adventurous investors.
### Tencent (TCEHY)
Tencent (OTCMKTS:TCEHY) follows a familiar trajectory with its Chinese compatriots. Following a dramatic rise against its IPO, Tencent's mercurial rise slowed noticeably between 2014 and 2016. However, 2017 produced a monster result for the popular internet-services company.
Unfortunately for shareholders caught up in the enthusiasm, TCEHY stock peaked in January of last year. Since then, it has largely been a downhill slide. Overall, Tencent lost more than 26% in 2018.
But what makes TCEHY one of the best stocks to invest in is momentum. Since hitting bottom on Oct. 29, shares have jumped more than 33%. More importantly, the bulls have carried this enthusiasm into the new year, moving toward double-digit territory.
While you're not getting the biggest discount with Tencent, you're receiving in its place more stability and confidence. Plus, a diplomatic headway will almost surely attract a surge in investor dollars.
### China Green Agriculture (CGA)
At first glance, China Green Agriculture (NYSE:CGA) doesn't meet the criteria for what to invest in now. For starters, CGA has become a veritable penny stock, with shares currently trading for less than a can of soda. Plus, the U.S.-China trade war directly and negatively impacts the agricultural industry.
But as a contrarian, CGA is also a candidate among the best stocks to invest in. The reason? Fundamentally, it can absorb many of the troubles associated with the U.S.-imposed tariffs. Management is sitting on $153 million in cash, while it only has $7.2 million in debt. Despite obvious pressures, CGA has enjoyed consistently positive free cash flow.
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Still, a resolution will go a long way. The tariffs have negatively impacted growth. In its most recent quarter, CGA suffered a 6.6% decline in revenue year-over-year. But based on its price action, we may have seen a bottom.
### Skyworks Solutions (SWKS)
Should we enjoy a breakthrough in the trade war, Chinese companies won't be the only ones to benefit. Several American organizations, including Skyworks Solutions (NASDAQ:SWKS), offer plenty of upside potential.
As a manufacturer of smartphone components, Skyworks is heavily levered towards China. According to CNBC, 83% of its revenue originates from the world's second-largest economy. Based on that statistic, it's no surprise that SWKS stock tanked last year, giving up 29%.
That said, Skyworks is enjoying a positive start to the year, gaining 5%. This sets up an intriguing case for speculation. On one hand, the company has likely suffered severe damage due to the trade war. China is the biggest smartphone market in the word.
On the other hand, SWKS will easily become one of the best stocks to invest in following a truce. Like the other names on this list, it's a tough call, but the possible rewards are tempting.
### Qualcomm (QCOM)
From a glance at its technical chart, Qualcomm (NASDAQ:QCOM) doesn't belong on a list for what to invest in now. Last year, QCOM stock lost shareholders 8% of market value. Even worse, since peaking around mid-September, the tech giant has slipped more than 26%.
Of course, Qualcomm is a major player in the smart-device sector. Therefore, the ongoing U.S.-China trade war levers an onerous headwind. At the same time, if American and Chinese leaders agree to a practical solution, QCOM would suddenly look attractive.
More importantly, Qualcomm has other avenues to explore, namely the 5G rollout and autonomous-vehicle technology. The former is already a reality: we're just talking about when global integration occurs, not if.
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The latter component is a little trickier because autonomous vehicles will take time to implement. However, QCOM does have reasonable assurances of a long-term revenue stream, which helps buffer the trade-war waves.
### Micron Technology (MU)
When the international community greenlighted China's insatiable thirst for all things tech, semiconductor firms flourished. But now that the U.S.-imposed tariffs dampened enthusiasm, companies like Micron Technology (NASDAQ:MU) are feeling the heat.
Its price chart tells you all you need to know. In the first half of 2018, MU stock was cruising to another outstanding year, gaining over 25%. But the second half told another tale, with shares sliding over 38%. With neither side budging, Micron ended last year down nearly 24%.
Betting on diplomacy isn't the safest thing to do, especially with the Trump administration. However, an unexpected breakthrough could make MU one of the best stocks to invest in. Currently, the company generates over half its revenue in China, so a truce is crucial.
### United Continental (UAL)
With the world's two largest economies going at it, you'd think international airliners would stall. However, United Continental (NASDAQ:UAL) has surprisingly been one of the best stocks to invest in. Last year, UAL stock returned a surprisingly robust 23%.
As it turns out, diplomatic troubles don't always translate downstream. Demand for flights to Asian countries have performed relatively well. Moreover, UAL has witnessed a surge for European travel, as well as domestic routes. Plus, a steep decline in fuel prices for the final quarter of 2018 provided an earnings boost.
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All that said, if UAL wishes to see continued momentum, a truce holds the key. On average, a Chinese tourist spends nearly $7,000 in the U.S. Therefore, sustained tensions between the two countries along with economic damage won't do our tourism industry any good.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.
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Updates from Online Music and Video Providers: SPOT, P, IQ(Continued from Prior Part)iQiyi enters Shanghai subway marketingiQiyi (IQ) has teamed up with several like-minded partners to form a joint venture focused on subway marketing in Shanghai,

Gribetz’s TED Talk especially resonated in China. Two of the country’s most recognizable technology brands, Lenovo Group Ltd. and Tencent Holdings Ltd., wrote checks to Gribetz’s Silicon Valley-based company Meta Co., which would raise more than $80 million, said research firm PitchBook Data Inc. The reliance on Chinese money would ultimately contribute to the startup’s downfall, according to Gribetz.

China has come down hard on its world-renowned counterfeit industry. Bazaars lined with fake watches, shoes and bags have been demolished in recent years. Many of the country’s best fakers are now hawking their wares via social messaging networks like Tencent Holdings Ltd.’s WeChat.

China has come down hard on its world-renowned counterfeit industry. Bazaars lined with fake watches, shoes and bags have been demolished in recent years. Many of the country’s best fakers are now hawking their wares via social messaging networks like Tencent Holdings Ltd.’s WeChat.

Starting April, online retailers will need to collect, deposit and report income and value-added taxes. The government of Joko Widodo may feel it’s entitled to reap some benefit from an internet economy that CLSA Ltd. estimates will surpass India in market size as soon as 2020. As retail business shifts online from bricks-and-mortar outlets, the government may also get to improve its tax collection. Roughly 65 percent of all offline retail sales are conducted by unregistered businesses that don’t file or pay taxes, according to CLSA.

It’s a culture that sits uneasily with the #MeToo movement that has swept across Europe and the U.S. In parts of Asia, corporate men continue to openly drink with colleagues or business clients at venues where women escorts are paid to consume alcohol, sing karaoke and -- often illegally-- perform sexual favors, according to interviews with men and women including Regina Yuan, who works at a Shanghai-based startup.

Cosan SA, the powerhouse controlled by 68-year-old Rubens Ometto, is launching a version of Alipay to process payments and money transfers through smartphones. It’s a bet that could save the conglomerate millions in fees and give it a foothold in Brazil’s booming fintech scene. The company, which also has fuel and natural gas-distribution businesses, wants to convince at least some of its 20 million customers to fill their tanks or pay their gas bills using a digital wallet named Payly (a combination of “Pay” and “Daily.”) It’s starting by cutting out the middle man -- namely, credit- and debit-card companies and payment processors -- in some of the 6,300 gas stations it owns in a venture with Royal Dutch Shell Plc. In the long run, it wants to build a larger base of users and vendors on the platform.

Cosan SA, the powerhouse controlled by 68-year-old Rubens Ometto, is launching a version of Alipay to process payments and money transfers through smartphones. It’s a bet that could save the conglomerate millions in fees and give it a foothold in Brazil’s booming fintech scene. The company, which also has fuel and natural gas-distribution businesses, wants to convince at least some of its 20 million customers to fill their tanks or pay their gas bills using a digital wallet named Payly (a combination of “Pay” and “Daily.”) It’s starting by cutting out the middle man -- namely, credit- and debit-card companies and payment processors -- in some of the 6,300 gas stations it owns in a venture with Royal Dutch Shell Plc. In the long run, it wants to build a larger base of users and vendors on the platform.

Osmo, a developer of learning games, will continue as a standalone brand once the deal is completed, according to a statement Wednesday. Founded in 2013 by two former Google engineers, Palo Alto, California-based Osmo uses augmented reality and artificial intelligence to bring physical toys into the digital world. Its backers include Accel Partners and Mattel Inc. with the startup so far attracting more than 1 million U.S. households.

Market historians will likely remember the 2010s as a pivotal decade for esports. Although gamers can trace its origins as far back as 1972, it took advances in the internet to make esports a global phenomenon.
A myriad of tech companies played a role in developing and supporting these games, paving the way in making esports what it is today. By understanding esports and all of the stocks that power it, investors can profit from this growing phenomenon.
### What Is Esports?
Put simply, esports is competitive video game playing. Competitions usually take place in multiplayer and team competitions, enabled by advances in streaming and live venues that help bring together tens of millions of gamers with similar interests. It has become so popular that the International Olympic Committee (IOC) has even looked at it as a possible Olympic sport. The IOC has so far rejected this idea.
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### Esports Stocks to Buy
Despite the IOC's sentiments, this has become a favorite gamer and spectator event. Among esports stocks, Activision Blizzard (NASDAQ:ATVI) has stood out, most recently with last year's deal with Disney (NYSE:DIS) to broadcast the Overwatch League on ESPN and Disney XD digital cable and satellite television.
Naturally, investors also look to peers such as Electronic Arts (NASDAQ:EA), Take-Two Interactive (NASDAQ:TTWO), and now, China-based Tencent (OTCMKTS:TCEHY). Tencent operates in many different fields. However, its gaming division alone dwarfs its largest American gaming peers.
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Of these, I would recommend EA stock at this time. It trades at a forward PE ratio of about 17.3x. Also, profit growth appears set to take off again. Analysts predict an 11.8% profit increase this year, and an average annual rate of 13.1% over the next five years.
EA has lagged Activision's esports promotion efforts. However, EA games such as Battlefield, Madden NFL, and FIFA have become popular. Its FIFA 18 Global Series attracted more than 20 million competitors alone. Between its low multiple and prominent games, EA is in a position to profit investors and become an up-and-coming player in the esports arena.
### Cadre of Stocks in Esports Ecosystem
To profit further, investors also need to consider the non-gaming stocks that make esports possible. Given the computing power of PCs, gamers consider these systems vastly superior to gaming consoles for speed. Players also need the fastest, most-powerful memory chips available. This need benefits Micron (NASDAQ:MU). The gaming industry will always purchase its fastest and most-expensive chips regardless of its demand situation.
Microsoft (NASDAQ:MSFT) has also become a vital esports stock. While its Xbox gaming console is one path into the industry, esports games players prefer to play on PCs. That's why Microsoft's Windows software plays a critical role in the gaming market despite the PC's overall decline in importance elsewhere. Meanwhile, headset maker Turtle Beach (NASDAQ:HEAR) has found its niche by making its headsets the gaming accessory of choice.
Still, in this market, I see Nvidia (NASDAQ:NVDA) as the hardware stock of choice. Today, most investors think of Nvidia for artificial intelligence (AI), self-driving cars, and virtual reality (VR). However, some might forget that Nvidia got its start as a chip company focused on gaming. Despite the new niches, gaming remains a vital part of its business. Like with MSFT and MU, gaming provides a foot in the PC market that will persist despite the PC's falling popularity.
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Thanks to a chip glut and a tech-stock selloff in the fall of 2018, NVDA stock has again become a bargain. In this latest swoon, its price-to-earnings (PE) fell to about 21x. However, after this fiscal year, profit growth should resume. Wall Street expects average profit growth of 15.1% a year over the next five years. Bolstered by AI, VR, and of course, esports, NVDA should become the premier chip stock over the next few years.
Finally, investors should also remember that the ATVI deal makes Disney a "gaming stock" in a technical sense. Its forward PE multiple stands at 15.1x. Also, profit growth bolstered by a move into streaming, and now, gaming should help the media company recover.
### The Bottom Line on Esports Stocks to Buy
Esports has not only become a favorite pastime, but it has also benefited equities across the tech landscape. This activity helps gaming-related equities such as TTWO stock. However, investors need to also look at companies that enable the games. One such stock is Nvidia, the maker of the chips that makes gaming possible. As well, due to its deal with Activision, one can also argue that a media company such as Disney has become an esports stock.
Like with gaming, investing in esports stock will take both skill and strategic thinking. However, by picking the right equities, traders can achieve the goal of making investing a winning esport in itself.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting.
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Tech's Latest: Apple's New Devices, Samples via Amazon, and More(Continued from Prior Part)Online games have seen a surge in popularityThe online gaming market has taken off in the last few years—so much so that fanatics don’t mind paying even

China's ByteDance Technology unveiled a new video messaging app called Duoshan, a move which analysts say will see it muscling into a space dominated by Tencent's WeChat messenger. ByteDance is one of China's fastest growing start-ups and owns the country's leading news aggregator Jinri Toutiao and short video platform TikTok. Xu Luran, the company's product director, debuted Duoshan at a live-streamed event in Beijing on Tuesday, during which she showed the app's chat functions and a feature allowing users to send videos to each other that will disappear after 72 hours.

China's ByteDance Technology unveiled a new video messaging app called Duoshan, a move which analysts say will see it muscling into a space dominated by Tencent's WeChat messenger. ByteDance is one of China's fastest growing start-ups and owns the country's leading news aggregator Jinri Toutiao and short video platform TikTok. Xu Luran, the company's product director, debuted Duoshan at a live-streamed event in Beijing on Tuesday, during which she showed the app's chat functions and a feature allowing users to send videos to each other that will disappear after 72 hours.

ByteDance, the world's most-valued startup, just launched a new social media product under its Douyin brand in what many people see as a serious attempt to challenge WeChat. Tencent has long dominated China's social networking space with WeChat and QQ. WeChat claims to have one billion monthly active users worldwide, most of whom are in China.

Best known for its news aggregation service Toutiao and short video clip sharing service Tik Tok, Bytedance is putting pressure on WeChat, which has more than a billion users and is considered a must-have in China. Tencent has used the popularity of WeChat to underpin its other businesses, including its gaming operations.

More than one billion people leave behind trails of information on WeChat every day as they use the messenger to chat, read, shop, hail rides, rent umbrellas and run many other errands. The rating system, which the company calls the "WeChat Payments Score" in Chinese, soft-launched last November across eight cities and has been piloting on a small number of apps. It's easy to imagine how the rewards mechanism can help nudge customers to try out WeChat's panoply of in-house and third-party offerings down the road.

Why Autohome Is Down 13% TodayAutohome Chinese online automobile content provider Autohome’s (ATHM) stock is known to be highly volatile. In December, the stock fell 5% after surging 13.8% in the previous month. Nonetheless, it managed to end 2018 with solid 24.7% gains. Investors’ high expectations for the company’s growth potential due

Tech giant Apple’s (AAPL) stock managed to remain in positive territory in the week ended January 11. Last week, the stock rose 2.7% against 2.5%, 3.5%, and 2.4% gains in the S&P 500 Index (SPY), the NASDAQ Composite Index (QQQ), and the Dow Jones, respectively. However, Apple stock turned negative again today. At around 11:46 AM ET, it was trading with 1.6% day losses, below the $150 psychologically significant level.

If you think 2018 was a rough year for American stocks, take a look overseas. Emerging markets were absolutely hammered last year.
The iShares MSCI Emerging Markets ETF (EEM), the most widely followed proxy for emerging-markets stocks, finished 2018 down 17%. Many individual developing countries fared even worse. The Xtrackers Harvest SCI 300 China A-Shares ETF (ASHR) - which tracks the performance of China's largest domestically traded shares - lost 29% last year. The iShares MSCI Turkey ETF (TUR) shed 43%.
But as we jump into 2019, there are several reasons you might want to give EMs another look.
To start, emerging-markets stocks actually were less volatile than American stocks during the wretched final quarter of 2018. Three months isn't a long enough period to draw any firm conclusions, but it's starting to look like investors have already largely abandoned emerging markets and there's "no one left to sell." That could mean a relatively low-risk entry point for an investor looking to allocate new money to emerging markets.
Secondly - and perhaps most importantly - emerging markets also are wildly cheap relative to American stocks. Perhaps not surprisingly, the U.S. market is now one of the most expensive in the world, according to estimates by Star Capital, trading at a cyclically adjusted price-to-earnings ratio ("CAPE") of 26.8. To put that in perspective, developed markets as a whole trade at a CAPE of 22.2, while emerging markets as a group trade at a CAPE of just 14.5.
Emerging markets can be a roller-coaster ride. The booms can make you wealthy, but the busts can be devastating. So don't overload your portfolio in EM stocks. But at today's prices, it makes sense to have a little skin in the game. With that said, here are five solid emerging-markets stocks to buy in 2019.
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